South African Airways, Kenya Airways Plc, Air Mauritius Ltd. and RwandAir are in talks to create an alliance, as they face mounting competition.
“Air Mauritius took the initiative to join forces with three other African airlines in a bid to create an alliance that would develop air connectivity in the region,” Chief Executive Officer Somas Appavou said Wednesday. “In a highly competitive environment, this alliance would allow the potential partners to create a consolidated network using the individual strength of each airline to offer passenger better choice and flexibility.”
The talks come at a time when Kenya Airways is going through a restructuring after reporting loses for three consecutive years.
In November 2017, the Kenyan government and lenders agreed to convert $405.3 million owed by the carrier into equity, giving the state a controlling stake and diluting other shareholders, including Air France-KLM. Last month, Air Mauritius reported a first-half loss of 17.7 million euros ($20.2 million).
South African Airways received an unsolicited 21 billion-rand ($1.4 billion) loan offer in return for a 51 percent stake in the cash-strapped state-owned carrier, City Press reported Dec. 23.
RwandAir is prioritizing adding new routes and overhauling its existing fleet over short-term profitability as the state-owned airline focuses on supporting the country’s growing tourism industry.
“As an alliance, the partner airlines would also benefit from synergies in areas like maintenance, knowledge sharing and training while they will also have an edge in procurement activities,” Appavou said in response to questions.
Latest Stories
-
Youth group accuses judiciary of undermining anti-corruption efforts
1 minute -
Parliament recommends ratification of WTO agreement on fisheries subsidies
15 minutes -
Ghana to roll out Labour Export Initiative – Mahama announces
17 minutes -
Two killed in fatal accident on Bole–Damongo Road
19 minutes -
Joseph Ade Coker, former NDC Greater Accra Regional Chairman dies
26 minutes -
From Bulldozing to Bail-Begging: Wontumi’s Plot Twist No One Saw Coming
49 minutes -
Mahama promises new modern regional hospital for Ahafo Region
1 hour -
Appiagyei-Atua: Protest by Minority over Wontumi’s arrest unnecessary and theatrical
1 hour -
Parliament approves GH¢10bn for NHIA
1 hour -
Martin Kpebu alleges some NPP bigwigs exploiting Wontumi’s arrest for political gain
1 hour -
Mahama orders swift completion of Maaban-Goaso Highway as he vows not to abandon projects started by previous government
1 hour -
Mahama rallies citizens for unity, determination, discipline for nation-building
2 hours -
‘Just give up; you are persona non grata already’ – Franklin Cudjoe to embattled Chief Justice
2 hours -
US$ 232,960 alleged Cannabis: One more grabbed and remanded
3 hours -
Video: Hitz FM’s Rep Ur Jersey ends in style as fans jam to afterparty beats
10 hours